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senate vote 2021-06-17#10
Edited by
mackay staff
on
2022-03-18 12:49:29
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Title
Bills — Treasury Laws Amendment (Your Future, Your Super) Bill 2021; in Committee- Treasury Laws Amendment (Your Future, Your Super) Bill 2021 - in Committee - Labor amendments
Description
<p class="speaker">Sue Lines</p><p>The question now is that the remaining amendments on sheet 1308 and the amendments on sheets 1320 and 1323, circulated by the opposition, be agreed to.</p><p class="italic"> <i>Opposition circulated amendments—</i></p><p>SHEET 1308</p><p class="italic">(1) Schedule 1, item 1, page 4 (after line 5), insert:</p><p class="italic"><i>emergency services worker</i> has the same meaning as in the Work Health and Safety Act 2011.</p><p class="italic"><i>excluded occupation</i>: see subsection 32S(1).</p><p class="italic"><i>front-line health worker</i>: see subsection 32S(2).</p><p class="italic"><i>health professional</i> means a person who, under a law of a State or Territory, is registered or licensed as a member of any health profession.</p><p class="italic">(2) Schedule 1, item 17, page 8 (line 14), omit "1 July 2021", substitute "1 July 2022".</p><p class="italic">(3) Schedule 1, item 17, page 8 (line 15), omit "1 July 2021", substitute "1 July 2022".</p><p class="italic">(4) Schedule 1, item 18, page 8 (lines 19 to 22), omit section 32Q, substitute:</p><p class="italic">32Q What is the stapled fund for an employee</p><p class="italic">A fund is the <i>stapled fund</i>, for an employee at a particular time in a financial year, if all of the following requirements are met at that time:</p><p class="italic">(a) the employee is not employed in an excluded occupation;</p><p class="italic">(b) APRA has made a determination under section 60C of the Superannuation Industry (Supervision) Act 1993 in relation to the previous financial year for each Part 6A product (within the meaning of that Act) that, at that time, is:</p><p class="italic">(i) offered by the fund; and</p><p class="italic">(ii) held by the employee;</p><p class="italic">(c) the determination is that the requirements of subsection 60D(1) of that Act are met in relation to that previous financial year for each of those products;</p><p class="italic">(d) any requirements prescribed by the regulations for the purposes of this section are met in relation to the fund.</p><p class="italic">(5) Schedule 1, item 18, page 9 (after line 22), at the end of section 32R, add:</p><p class="italic">(4) Without limiting subsection (3), the Commissioner must, under that subsection, change an earlier notification given in relation to the employee if:</p><p class="italic">(a) the earlier notification was that the Commissioner was satisfied that there was a stapled fund for the employee; and</p><p class="italic">(b) because of a notification given to the Commissioner by APRA under section 60CA of the Superannuation Industry (Supervision) Act 1993, the Commissioner is no longer satisfied that the fund is a stapled fund for the employee.</p><p class="italic">(6) Schedule 1, item 18, page 9 (after line 22), at the end of Division 7, add:</p><p class="italic">32S Excluded occupations</p><p class="italic">(1) An employee is employed in an <i>excluded occupation</i> if the employee is employed:</p><p class="italic">(a) in an occupation that the Australian Government Actuary has certified:</p><p class="italic">(i) based on rates of death, or death and total and permanent disability; and</p><p class="italic">(ii) using information from the most recent 5 years in relation to Australian occupations;</p><p class="italic">is in the riskiest quintile of Australian occupations; or</p><p class="italic">(b) as an emergency services worker; or</p><p class="italic">(c) as a front-line health worker.</p><p class="italic"> <i>Meaning of front-line health worker</i></p><p class="italic">(2) A person is employed as a <i>front-line health worker</i> if:</p><p class="italic">(a) the person is employed as health professional; or</p><p class="italic">(b) the person is employed for the purposes of providing supports or services to people with disability under the National Disability Insurance Scheme; or</p><p class="italic">(c) the person's principal place of work is:</p><p class="italic">(i) a hospital; or</p><p class="italic">(ii) a surgery; or</p><p class="italic">(iii) a health clinic; or</p><p class="italic">(iv) a residential aged care facility; or</p><p class="italic">(v) the place of business of another business that provides health or disability services.</p><p class="italic">(7) Schedule 1, item 24, page 10 (line 26), omit "1 July 2021", substitute "1 July 2022".</p><p class="italic">(8) Schedule 2, item 5, page 15 (after line 2), insert:</p><p class="italic"><i>defined benefit interest</i> has the meaning given by the regulations.</p><p class="italic">(9) Schedule 2, item 9, page 16 (line 30) to page 17 (line 4), omit section 60B, substitute:</p><p class="italic">60B Meaning of Part 6A product</p><p class="italic">A <i>Part 6A product</i> is any class of beneficial interest in a regulated superannuation fund, other than a defined benefit interest.</p><p class="italic">(10) Schedule 2, item 9, page 17 (after line 23), after section 60C, insert:</p><p class="italic">60CA APRA to notify Commissioner of Taxation of fail assessment</p><p class="italic">(1) This section applies if:</p><p class="italic">(a) APRA gives the trustee or trustees of an entity a notification of a determination under subsection 60C(2); and</p><p class="italic">(b) the determination is that the requirement in subsection 60D(1) has not been met, for a Part 6A product offered by the entity, in relation to a financial year.</p><p class="italic">(2) APRA must notify the Commissioner of Taxation in writing of the fact mentioned in paragraph (1)(b) of this section.</p><p class="italic">(11) Schedule 2, item 9, page 17 (line 25) to page 18 (line 3), omit subsection 60D(1), substitute:</p><p class="italic">Meeting requirements specified in regulations</p><p class="italic">(1) The requirement in this subsection is met for a Part 6A product in relation to a financial year if:</p><p class="italic">(a) the regulations specify requirements, for the purposes of this subsection, in relation to a class of Part 6A products that include that Part 6A product; and</p><p class="italic">(b) those requirements are met for that Part 6A product in relation to the financial year.</p><p class="italic">(12) Schedule 2, item 9, page 18 (after line 9), after subsection 60D(2), insert:</p><p class="italic">(2A) Regulations made for the purposes of subsection (1) must specify requirements that ensure that, for annual performance assessments conducted under this Part, the assessment of the past performance of a Part 6A product offered by a fund covers the shorter of the following periods:</p><p class="italic">(a) the period of 10 years; or</p><p class="italic">(b) the period for which the performance of the Part 6A product offered by a fund can be assessed, including any period where a product, that was the direct predecessor of the Part 6A product, was offered by the fund.</p><p class="italic">(13) Schedule 2, item 9, page 18 (line 11), omit fees and/or.</p><p class="italic">(14) Schedule 2, item 9, page 20 (after line 12), at the end of section 60D, add:</p><p class="italic"> <i>Fees</i></p><p class="italic">(14) Before the Governor-General makes regulations for the purposes of subsection (1), the Minister must have regard to the impact of fees on Part 6A products.</p><p class="italic">(15) The investment returns mentioned in paragraph (2)(a) must be net of fees.</p><p class="italic">(15) Schedule 2, item 9, page 26 (after line 16), after subsection 60J(3), insert:</p><p class="italic">(3A) Methods under paragraph (1)(a) must include methods for ranking Part 6A products according to long-term investment returns.</p><p class="italic">(3B) For the purposes of subsection (3A), <i>long-term</i> means 10 years or longer.</p><p class="italic">(16) Schedule 2, item 10, page 27 (lines 6 to 8), omit "identified by regulations made for the purposes of paragraph 60B(b) of the Superannuation Industry (Supervision) Act 1993".</p><p class="italic">(17) Schedule 3, item 5, page 29 (lines 11 to 15), to be opposed.</p><p class="italic">(18) Schedule 3, item 6, page 29 (after line 23), after subsection 34(2A), insert:</p><p class="italic">(2AA) Subsection (2A) does not apply to the extent that the standards relate to keeping or retaining records in relation to a non-material matter.</p><p class="italic">(2AB) For the purposes of subsection (2AA), a non-material matter includes a payment or investment made:</p><p class="italic">(a) by or on behalf of the superannuation entity; and</p><p class="italic">(b) that a reasonable person would not expect to impact materially the financial interests of the beneficiaries of the entity.</p><p>SHEET 1320</p><p class="italic">(1) Schedule 3, item 11, page 30 (after line 26), after subsection 52(3A), insert:</p><p class="italic"> <i>Payments and arrangements to which best financial interests obligations apply</i></p><p class="italic">(3B) Without limiting paragraph (2)(c), the obligations of the trustee under that paragraph apply in relation to the following payments made, or arrangements entered into, by or on behalf of the entity:</p><p class="italic">(a) a payment to the trustee from the assets of the entity;</p><p class="italic">(b) an arrangement between the trustee, or a connected entity of the trustee, and a third party (including a connected entity of the trustee) that is an arrangement relating wholly or partly to the entity;</p><p class="italic">(c) a payment to a third party by or on behalf of the trustee, or a connected entity of the trustee, that is a payment relating wholly or partly to the entity.</p><p class="italic">(3C) For the purposes of subsection (3B):</p><p class="italic">(a) a <i>payment</i> includes:</p><p class="italic">(i) a payment in the form of a fee, charge, remuneration, dividend, expense, reimbursement or indemnity; and</p><p class="italic">(ii) a payment to an adviser, agent, delegate, custodian, administrator, manager or other appointee of the trustee or entity; and</p><p class="italic">(iii) a payment authorised by a beneficiary; and</p><p class="italic">(b) an <i>arrangement</i> includes:</p><p class="italic">(i) an arrangement to provide insured benefits in respect of beneficiaries; and</p><p class="italic">(ii) an arrangement to provide services to, or on behalf of, the trustee in relation to the entity; and</p><p class="italic">(iii) an arrangement for the payment of amounts out of the assets of the entity to any other party.</p><p class="italic">(2) Schedule 3, item 15, page 31 (after line 16), after subsection 52A(2A), insert:</p><p class="italic"> <i>Payments and arrangements to which best financial interests obligations apply</i></p><p class="italic">(2B) Without limiting paragraph (2)(c), the obligations of the director under that paragraph apply in relation to the following payments made, or arrangements entered into, by or on behalf of the corporate trustee or the entity:</p><p class="italic">(a) a payment to the director or the corporate trustee from the assets of the entity;</p><p class="italic">(b) an arrangement between the director or the corporate trustee (or an associate of the director or corporate trustee) and a third party that is an arrangement relating wholly or partly to the entity;</p><p class="italic">(c) a payment to a third party by or on behalf of the director or the corporate trustee (or an associate of the director or corporate trustee), that is a payment relating wholly or partly to the entity.</p><p class="italic">(2C) For the purposes of subsection (2B):</p><p class="italic">(a) a <i>payment</i> includes:</p><p class="italic">(i) a payment in the form of a fee, charge, remuneration, dividend, expense, reimbursement or indemnity; and</p><p class="italic">(ii) a payment to an adviser, agent, delegate, custodian, administrator, manager or other appointee of the director, corporate trustee or entity; and</p><p class="italic">(iii) a payment authorised by a beneficiary; and</p><p class="italic">(b) an <i>arrangement</i> includes:</p><p class="italic">(i) an arrangement to provide insured benefits in respect of beneficiaries; and</p><p class="italic">(ii) an arrangement to provide services to, or on behalf of, the director or corporate trustee in relation to the entity; and</p><p class="italic">(iii) an arrangement for the payment of amounts out of the assets of the entity to any other party.</p><p>SHEET 1323</p><p class="italic">(1) Clause 2, page 2 (table items 2 and 3), omit the table items, substitute:</p><p class="italic">2. Schedule 1      1 July 2022.   1 July 2022</p><p class="italic">3. Schedule 2,</p><p class="italic">Parts 1 and 2         1 July 2022.   1 July 2022</p><p class="italic">(2) Clause 2, page 2 (table item 6), omit the table item, substitute:</p><p class="italic">6. Schedule 3      1 July 2022.   1 July 2022</p><p class="italic">(3) Schedule 1, item 17, page 8 (line 14), omit "1 July 2021", substitute "1 July 2022".</p><p class="italic">(4) Schedule 1, item 17, page 8 (line 15), omit "1 July 2021", substitute "1 July 2022".</p><p class="italic">(5) Schedule 1, item 24, page 10 (line 26), omit "1 July 2021", substitute "1 July 2022".</p><p class="italic">(6) Schedule 2, item 10, page 27 (lines 3 to 9), omit subitem (1), substitute:</p><p class="italic">(1) Subject to subitem (2), the amendments made by this Schedule apply in relation to Part 6A products on and after 1 July 2022.</p><p class="italic">(7) Schedule 3, item 24, page 34 (line 15), omit "31 December 2021", substitute "31 December 2022".</p> -
- The majority voted against [Labor amendments](https://www.openaustralia.org.au/senate/?gid=2021-06-17.96.1), which means they failed and won't form part of [the bill](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6672).
- ### What does this bill do?
- According to the [bill homepage](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6672), the bill was introduced to:
- * *provide that if a new employee has an existing 'stapled' superannuation fund and does not choose a fund to receive contributions, their employer is required to make contributions on behalf of the employee into the stapled fund; and ensure that employers are not in breach of various rules, or are not liable for superannuation guarantee charge, in certain circumstances;*
- * *require the Australian Prudential Regulation Authority to conduct an annual performance test for MySuper products and other products to be specified in regulations;*
- * *require trustees of registrable superannuation entities and self managed superannuation funds and directors of the corporate trustee of a registrable superannuation entity to perform their duties and exercise their powers in the best financial interests of the beneficiaries;*
- * *reverse the evidential burden of proof for the best financial interests duty so that the onus is on the trustee of a registrable superannuation entity;*
- * *allow regulations to be made to prohibit certain payments made by trustees of registrable superannuation entities and prescribe additional requirements on trustees and directors of trustee companies of registrable superannuation entities;*
- * *allow contraventions of record-keeping obligations specified in regulations to be subject to a strict liability offence; and*
- * *remove an exemption from disclosing information about certain investments under the portfolio holdings disclosure rules.*
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